Resources used for an activity are measured by the
A)cost driver rate times the cost driver volume.
B)resources supplied to an activity.
C)expenditures for the activity.
D)unused resource capacity.

Question

Quizplus · Accepted Answer

Resources used for an activity are typically measured by the cost driver rate (e.g. cost per unit of activity performed) multiplied by the volume of cost driver activity. This calculation helps to determine the total cost of the activity and can be used for budgeting, performance evaluation, and pricing decisions. The other options listed (resources supplied, expenditures, and unused resource capacity) may be relevant for understanding the costs of an activity, but are not typically used as the primary measure of resource usage.

Resources Used for an Activity Are Measured by the